Paint & Decorating Retailer August 2024

Painting the Future

AUGUST ISSUE SPONSOR

Painting the Future

Brush Roller

Trowel

Sprayer

1025 E. 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

COMMUNICATIONS

Lindsey Thompson Managing Editor lthompson@YourNHPA.org

Melanie Moul Research & Enterprise Content Manager mmoul@YourNHPA.org

Jacob Musselman Content Coordinator jmusselman@YourNHPA.org

Autumn Ricketts Lead Graphic Designer Olivia Shroyer Graphic Designer Austin Vance Production Manager

Samantha Mitchell Production & Design Assistant

Freda Creech Sales & Production Assistant

Nathan Piper Marketing Coordinator

ASSOCIATION PROGRAMS

800-772-4424 | NHPA@YourNHPA.org

Katie McHone-Jones kmchone-jones@YourNHPA.org Executive Director of Retail Engagement & Events

Kim Peffley kpeffley@YourNHPA.org Executive Director of Educational Development & Consulting

Jesse Carleton jcarleton@YourNHPA.org Training Manager & Editor

Renee Changnon rchangnon@YourNHPA.org Retail Engagement Specialist

SALES

Jordan Rice 217-808-1641 | jrice@YourNHPA.org Regional Sales Director

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

COMING IN SEPTEMBER

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA EXECUTIVE STAFF

Bob Cutter President & CEO

Dan Tratensek

Financial Checkup

Accounting statements are the health reports of your business; are you happy with what you see? In the September issue of Paint & Decorating Retailer, we’ll look at key KPIs on a typical accounting statement, why it’s important for your employees to understand something about finances and what everyone can do to keep those numbers in top shape.

PAINT & DECORATING RETAILER

(ISSN 1096-6927): Published monthly except December by the North American Hardware and Paint Association, 1025 E. 54th St., Indianapolis, IN 46220. Phone: 800-737-0107.

Subscription rates: January through November issues, $50 in U.S., payable in advance. Canada $75 per year. All other countries $100 per year. Single copy $7, except July issue, $25. Periodicals postage paid at Indianapolis, Indiana, and additional mailing offices. Postmaster: Send address changes to Paint & Decorating Retailer, P.O. Box 16709, St. Louis, MO 63105-1209. Returns (Canada): Return undeliverable magazines to P.O. Box 2600, Mississauga, Ontario L4T 0A8. PM# 41450540. Copyright © North American Hardware and Paint Association, 2024.

Chief Operating Officer & Publisher

David Gowan

Chief Financial Officer & Executive Vice President, Business Services

Scott Wright Executive Director of Content Development & Executive Editor

Whitney Mancuso Executive Director of Marketing & Industry Relations

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Ned Green, Weider’s Paint & Hardware, Rochester, New York

EXECUTIVE VICE CHAIRMAN

Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ash Ebbo, Clement’s Paint, Austin, Texas Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Michelle Meny, Meny’s True Value, Jasper, Indiana

Michael Sacks, FLC Holdings, LaGrange, Texas

SECRETARY-TREASURER

Bob Cutter, NHPA President & CEO

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

As home improvement retailers look to embrace what’s next to enhance their operations, artificial intelligence tops the list. See the ways independent home improvement retailers are using AI to improve efficiency and how you can incorporate these programs into your own operation.

FOCUS Filling in the Cracks Learn from a former professional contractor on how he uses his 20 years of experience to create videos and online courses to educate his customers on caulk and caulk tools.

Photo Credits: AI Generated

to Reach Lindsey lthompson@YourNHPA.org

Lindsey Thompson

FROM THE EDITOR

Teaching an Old Dog New Tricks

Please excuse me for breaking one of the top five rules of journalism—using cliches—right from the start. But as I was thinking through this column, I couldn’t help but see how the cliche fits perfectly. I am the old dog, and I am being taught new tricks!

Just last month, I marked three and a half years with the North American Hardware and Paint Association (NHPA). I started with NHPA as an associate editor, a role I was honestly was just excited to get because at almost 38 years old when NHPA hired me, I felt ancient applying for jobs in an industry that is pretty heavy in youngins. I was so grateful to NHPA for giving me a chance at a late-in-life career.

When I started, I was an old dog, but I was ready to learn some new tricks. NHPA set me up, and continues to set me up, for success to do just that. Along with honing my writing and editing skills, I’ve learned to be a better leader and teammate, have hard conversations and step out of my comfort zone in several different ways.

“AI can create higher efficiencies, save money and allow employees to focus on what’s most important—your customers.”

Thanks to the empowerment and encouragement from the leadership team at NHPA, I’ve recently been promoted to managing editor. This is a role I can’t wait to dive into to continue to guide NHPA in creating content that is engaging, helpful and allows you to become better and more profitable retailers. I can’t wait to grow even more and learn even more new tricks.

This month’s feature on artificial intelligence (AI), which begins on Page 18, is also all about teaching old dogs (no offense!) new tricks. AI has so many great applications and benefits and has helped so many retailers become more efficient, more profitable and just overall better. But it can also be a little terrifying and requires many people to stretch themselves and learn their own new tricks.

From loss prevention to marketing content, AI can create higher efficiencies, save money and allow employees to focus on what’s most important—your customers. We even had a little fun ourselves with AI in this issue. The cover was designed by AI under the direction of one of our graphic designers. It’s exciting to imagine where AI will take us!

Reflecting on it, the old dog, new tricks is the perfect metaphor because I am old and AI is new. Just like NHPA took a chance on me, I encourage you to take a closer look at AI. It might stretch you, but who knows what new tricks you might come away with.

Lindsey Thompson Managing Editor

Based in Kalamazoo, Michigan, Midwest Fastener is a family-owned hardware supplier that services all over the country, from Alaska to Puerto Rico. Midwest Fastener has deep roots with a long-standing reputation in the general and construction fastener aisle for being a knowledgeable, responsive, and trusted partner for your hardware needs. We accomplish this through a fully customer-focused approach by offering quality products and keeping commitments. Our national sales force is dedicated to servicing local hardware stores, lumberyards and more.

CONNECTIONS

How to Reach Dan

Dan Tratensek dant@YourNHPA.org

“This event is bringing together hundreds of retailers to be celebrated by their industry allies.”

FROM THE PUBLISHER

Independent Retailers Thrive

LATER THIS MONTH, there’s going to be a very special event taking place, and I wanted to use my column in this issue not to promote this event but to point out why it is so relevant.

If you haven’t guessed by now, I’m referring to the Independent Home Improvement Conference (IHI Conference) that will be held August 27-29 down in Marco Island, Florida.

Oh sure, I could tell you about all the networking opportunities, educational sessions and events planned during the conference, but you’ve honestly probably heard enough about all that by now.

What I want to focus on is the fact that the event itself exists and is being roundly supported by the home improvement channel. From my perspective, as someone who has been watching this industry for nearly three decades, I don’t take its existence for granted at all.

Years ago, we would often have the conversation, even within the channel, about why independent retail operators were still relevant. The prevailing thought was that in the era of big-box proliferation, the small “mom and pops” would never be able to put up a fight.

Yet here we are, almost half century after the likes of Home Depot and Lowe’s started on their growth trajectories, and independent operators are perhaps more relevant than they have been at any time during this period.

The IHI Conference is a testament to this relevance.

This event is bringing together hundreds of retailers to celebrate with one another, learn from one another and be celebrated by their industry allies.

The event is truly one of a kind. It is the singular place in the industry where independent retailers of all affiliations will come together in an environment that is solely focused on their needs.

It’s been truly humbling to see how the entire channel has rallied around this cause and how competitors have been willing to put down their banners to elevate the channel and ensure independent retailers remain a vibrant part of this industry.

This event and its supporters are clearly committed to making sure independent retailers not only survive but continue to excel well into the future. This is a major leap forward from a time when so many seemed to question whether independent retailers would even have a future.

It’s important to remember that it is only through the support of industry partners like those who will be present in Marco Island this month that independent retailers have defied the odds and excelled in the face of mounting competition. It is also only through the willingness of these retailers—YOU—to support, encourage and learn from one another that will guarantee the continued importance and vibrancy of the channel.

I hope to see you all down in Marco Island to celebrate the success story at the heart of independent home improvement retailers, and if you couldn’t make it this year, let’s make sure we get together in 2025.

Dan M. Tratensek Chief Operating Officer & Publisher

• Low flat-rate stop-charges

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RESOURCES

Tech Smart

Browse NHPA’s technology resources for best practices, insights, guides and more at YourNHPA.org/tools-and-guides/technology

Meet Adam

Adam Gunnett started with Busy Beaver Building Centers in 2015 as an IT specialist, eventually serving as director of IT and then director of IT & marketing, where he skillfully merged the technical aspects of IT with the creative demands of marketing. Most recently, Adam was promoted to director of IT & business intelligence. In this role, he integrates IT solutions with business intelligence strategies, aiming to optimize operational efficiency and market impact. Adam has been pivotal in fostering a technology-driven environment at Busy Beaver. His approach ensures the staff at Busy Beaver are equipped with cutting-edge tools, enabling them to focus on delivering legendary customer service and reducing time spent on manual, repetitive tasks. This evolution in Adam’s career highlights his adaptability, technical prowess and visionary leadership in the ever-evolving landscape of IT and business intelligence.

Email agunnett@busybeaver.com

LinkedIn Adam Gunnett

The Future Is Here

Artificial intelligence (AI) has permeated every facet of business and consumer technology, rapidly transforming from a futuristic concept to an inescapable presence. As we look ahead, it’s clear that within the next year, everyone—whether casually browsing social media or conducting an online search—will experience AI in some form. This rapid integration prompts a key question: How can we best leverage AI beyond the buzz and hype?

AI’s application ranges from mere novelties to substantial, efficiency-driving tools. For instance, many professionals, including my peers, are now utilizing ChatGPT for content creation. This has proven to be a highly efficient use of AI, serving as an entry point for many into the broader realm of artificial intelligence. Personally, I regularly use it to refine communications, from sprucing up emails to drafting articles like this one (shh!).

The popularity of tools such as ChatGPT and Microsoft Co-Pilot is paving the way for wider acceptance of conversational AI. This shift is reminiscent of the widespread adoption of touchscreen technology—a once novel feature that has become a daily necessity.

At Busy Beaver, we are embracing AI to enhance how we manage and disseminate internal information. We have begun transitioning our internal documentation, company policies, standard operating procedures (SOPs) and learning materials to the Zipline platform. This platform features an AI bot named Zippy that provides personalized responses based on the employee’s specific location and role, ensuring that each team member has access to the exact information they need without unnecessary complexity.

Additionally, we are testing a new tool called Profitmind, touted as an AI retail analyst. One of the enduring challenges at Busy Beaver has been effectively utilizing the vast amount of data we collect. Profitmind introduces an AI layer over our existing data systems, offering a new level of transparency. This enables our decision-makers to understand complex data sets more intuitively, enhancing confidence in their decisions and promoting swifter execution. The ability of AI to analyze massive amounts of data almost instantly provides actionable insights and recommendations that can significantly influence both our top and bottom financial lines.

Our goal is to harness AI not as a replacement for human expertise, but as a powerful tool to empower our employees and enhance their capabilities. We are optimistic and excited about the potential of AI to reshape our operations, confident that this technology will lead to smarter, faster and more effective employees.

Adam Gunnett Director of IT & Business Intelligence Busy Beaver Building Centers Inc.

EDUCATION

A Strong Foundation

The NHPA Foundations of Retail Program provides flexibility for busy schedules and features industry-specific training. Learn more at YourNHPA.org/foundations

How to Foster an Engaged Team

—Emily Kribs, Kabelin Ace Hardware

I had the great pleasure of working with Emily for years, and I know she’s an exceptional leader. Emily truly cares about each of her team members. I have learned a lot from her through the years. Keep up the amazing work! Employee engagement is crucial and should be a primary focus of every leadership team. When I think about employee engagement, I like to visualize the team in this activity. Imagine your team is in a rowboat, tasked with crossing a lake. Here’s what typically happens:

• Engaged Employees: These team members grab paddles and are eager to help achieve the goal.

• Unengaged Employees: These individuals get in the boat but don’t paddle, relying on others to do the work.

• Disengaged Employees: This group grabs paddles but rows in the wrong direction, intending to be disruptive. As leaders, we often focus too much on the disruptive employees and neglect those diligently rowing in the right direction. Here’s a few ways to effectively boost employee engagement and morale.

First, determine who is engaged, not engaged and disengaged on your team. Visualize them in the boat. Second, recognize and thank engaged employees for their hard work. Ask how you can support them and provide the necessary tools for their success.

Third, connect with unengaged and disengaged employees to understand why they are not participating. Ask those employees questions, listen and help find ways to get

them involved and motivated to contribute. Have direct conversations to understand their disruptive behavior. Address concerns without letting them consume all of your time. Set clear goals and hold them accountable. Remember, as a leader, your role is to steer your boat and ensure everyone is rowing in the right direction. By recognizing and rewarding your engaged employees, re-engaging those who have lost motivation and addressing the disruptive behaviors of the disengaged, you create a balanced and harmonious team.

Keep your focus on fostering a positive environment where everyone feels valued and empowered. When each team member knows their efforts are appreciated and their growth is supported, you’ll find your boat gliding smoothly across the lake towards success. Your team’s engagement is the key to your collective achievements. By focusing on each group appropriately, you can ensure your team feels motivated and appreciated, which leads to a more productive and positive work environment. Now, let’s go out and make a difference in someone’s day today!

Kim Peffley Executive Director, Educational Development and Consulting, NHPA

Kim Peffley is the executive director of educational development and consulting with the North American Hardware and Paint Association (NHPA). With 30 years of retail experience, her management and leadership knowledge enables her to offer professional training covering many aspects related to effectively leading a team in a home improvement retailing environment. Peffley leads retailers through comprehensive organizational change to improve internal communications and create stronger teams.

WEBSITES THAT CRUSH

Mountain Mojo Group builds the perfect website using ECI Spruce eCommerce software so that your contractors and their teams can place orders, and your customers and their families can find and purchase all of your products online!

What makes Spruce eCommerce the right software for you?

Fully integrated inventory with industry-specific PIM system Easy-to-use, drag-n-drop capability, prebuilt templates, and more that anyone can edit

Customer excellence solutions such as quoting and loyalty programs that open new sales channels, and optimize e ciency

• Ensure your website has a brand-consistent voice that mirrors your customer's in-store experience!

• Tell your story based on your store, your team, and your town’s shared values.

• Have an SEO content strategy for your departments, service o erings, and products to rank.

OPERATIONS

Service First

Learn the five underrated building blocks of quality customer service that are key to a successful customer experience at PDRmag.com/customer-must-dos

WINNING CX

CUSTOMER SERVICE IS CONSTANTLY EVOLVING, with customer expectations seemingly changing day to day. According to the recent Salesforce Sixth Edition State of Service Report, 86% of respondents say customer expectations are higher than they used to be. Customers want better service across more channels, and they want it now. Take a closer look at some of these statistics from the survey to shape your own customer service strategies.

61%

Prefer to use self-service to resolve simple issues

77%

Expect to interact with someone immediately when they contact a company

88%

Say good customer service makes them more likely to purchase again

OF THE CUSTOMER SERVICE AGENTS SURVEYED

82% say customers ask for more than they used to

81% say customers expect a personal touch more than they used to

78% say customers seem more rushed than they used to

Scotchbrand.com/painterstape

3M: Your Partner for the Whole Project

very day in your operation, your customers rely on your knowledge and expertise to guide them to the right products for the job. Whether your customer is a novice or an expert, making the product selection process simple for them is critical to ensuring they have everything they need and can quickly get back to work.

Enter: 3M.

From prep to respirator safety, we have the entire line of products to help you help your customers, with more than a century of quality and superior performance leading the way.

Project Prep: Abrasives & Painter’s Tape

Get started on the right track with sanding blocks and painters’ tape that ensure a smooth, clean finish every time.

Made for detailed sanding projects, the 3M™ Pro Grade Precision™ Dust Channeling Block Sanding Sponge features hexagonal-patterned side channels to direct dust away from the surface. It is suitable for wet or dry sanding. The sponge is clog-resistant and conforms to the surface for easy sanding and will not discolor it.

When it’s time to tape, use ScotchBlue™ Sharp Lines Painter’s Tape for medium adhesion on smooth or lightly textured walls, trim, baseboards, tile or glass. Edge-Lock™ Technology seals out paint for crisp lines, and the tape leaves no damage or sticky residue behind with a clean removal within 21 days for interior and exterior applications.

For interior projects that require a delicate approach, the choice is Scotch® Delicate Surface Painter’s Tape

Specially designed for delicate surfaces like wood floors, wallpaper, cabinets and freshly painted walls (painted at least 24 hours ago), this masking tape featuring Edge-Lock™ Technology delivers crisp paint lines and clean removal, making it ideal for sensitive projects like accent walls, decorative stripes and patterns.

Project Safety: Respirators

Breathe easy with respirators designed to help provide comfortable and convenient respiratory protection.

The 3M™ Aura™ Particulate Respirator 9205+ is an N95 disposable particulate respirator that is designed to help provide respiratory protection of at least 95% filtration efficiency against certain non-oil based particles. The respirator fits a wide range of face shapes and sizes, and the innovative chin tab is designed for easy positioning, donning and adjusting. The lightweight, three-panel designed respirator accommodates facial movements for comfortable working and talking. 3M’s proprietary filter media, 3M™ Advanced Electrostatic Media, filters dust and other airborne particles, while allowing for easy breathing. The flat fold design allows for convenient storage and portability prior to use.

Project Performance: Wall Repair

Approach hole repair projects of any size with the right combination of tools.

For large repairs, you can recommend 3M™High Strength Large Hole Repair, which allows for repairs five times faster than traditional vinyl spackling. No guessing is needed with 3M™ High Strength Hole Repair Color Changing Spackling Compound, which applies blue and dries white when it’s ready to sand. This product makes small repairs up to 3-inches quick and easy. And when you need a ready-to-go solution, 3M™ High Strength Small Hole Repair, All-in-One Applicator Tool includes a putty knife, primer-enhanced spackle and a sanding pad all in one convenient tool.

NEW PR ODUCTS

OUTREACH

Retailer Recommendations

Send an email to editorial@YourNHPA.org telling us about the products your customers love and why they are such a hit in your business.

CABINET PULL EMTEK

emtek.com

The Emtek Select Round Smooth Cabinet Edge Pull comes in seven finishes and is sold as a complete set, including screws. The bar pull can be customized to be knurled or smooth and is available in multiple widths.

DOUBLE-SIDED PAINTER’S TAPE FROGTAPE

frogtape.com

ELECTRIC SANDER

ROBERT BOSCH TOOL CORP. boschtools.com

The Bosch 18-Volt Brushless Orbit Sander combines a compact, palm-grip build with power for stock removal similar to a corded sander. Its ergonomic grip design helps provide control and convenience during use. The sander features a mobile dust collection system with either a dust bag or vacuum hose attachment.

The FrogTape Double-Sided Poly-Hanging Containment Tape is made to hang poly sheeting in less time. With a premium grade painter’s adhesive on one side and an aggressive adhesive on the other, this tape can protect both surfaces.

RECHARGEABLE LANTERN

NITE IZE niteize.com

The Radiant Starlit Rechargeable Lantern + String Lights is a 200-lumen white lantern with a wind-up 23-foot string light with four selectable colors and four color-changing modes. The attached string lights include a hand crank for storage. The lantern can stay illuminated while charging and can fully charge in around 2.5 hours.

Photo courtesy of FrogTape

REUSABLE PAINT TRAY

REPAINT STUDIOS

repaintstudios.com

The Repaint Tray is a silicone paint tray liner and lid designed with convenience in mind, allowing users to preserve their ongoing projects. The re-sealable lid ensures poured paint remains fresh and safe from external elements. The Repaint Tray fits a 1-quart paint tray and can fit a 9-inch roller brush. When finished with the project, users can let the paint dry in the liner and easily peel it out of the silicone.

POTTERY KIT

POTTERY WITH A PURPOSE potterywithapurpose.com

The Beginner Pottery Kit from Pottery with a Purpose lets users make their own pottery at home and includes everything needed to sculpt and paint a pot—no kiln needed. Finalized creations are not waterproof. Each kit provides enough clay for up to two people.

SNAPBACK HAT

NINE LINE APPAREL ninelineapparel.com

The Nine Line Snapback Hat combines a classic hat with a versatile design. No top button provides maximum comfort while wearing hearing protection or headphones. This hat is great for the range, yard work and everything in between and is available in several colors and styles.

GRAB BAR MOEN moen.com

The Moen Voss designer grab bar is compliant with Americans with Disabilities Act (ADA) specifications and comes in a 24-inch bar length. It’s corrosion resistant, offers stainless steel construction for durability and can support up to 500 pounds.

SHOWER

The Masonite sliding barn door with hardware kit is an all-in-one solution, allowing for DIY installation in under 90 minutes. It turns a doorway into a space-saving barn door that glides on a track. The glass provides 90% privacy and the faux wood finish comes in black with black hardware.

CAULK TOOL ALLWAY TOOLS allwaytools.com

The Allway Three-in-One Caulk Tool can remove old caulk, apply fresh caulk and scrape surfaces. It works seamlessly with latex, acrylic and silicone caulk and can be used on projects from the bathroom to the kitchen. It features a soft grip and stainless steel blade and has a rotatable silicon smoothing triangle.

REMOVES MULTIPLE LAYERS of oil, latex, acrylic, and water-based paints, stains, and varnishes in as little as one application!

PERFECT FOR Remodeling of Wood Furniture, Cabinets, Decks, Patios, Concrete, Masonry, Iron & Steel, and much more!

NO CAUSTIC CHEMICALS like Methylene Chloride or NMP.

Trusted By Painting Professionals

USED ON restoration projects of historic buildings, landmarks, & fine homes From Colonials, to Ranches, to Victorians & more.

PROFESSIONAL AND CONSUMER FRIENDLY

Available at your local home center/hardware store & paint retailers

SUN HOODIE TRUEWERK

truewerk.com

The B1 Sun Hoodie from Truewerk comes in nine colors and is available in sizes small through 3XL. It is lightweight and sweat-wicking and provides head, neck and arm protection from the sun. It has a scuba style hood and is abrasion- and tear-resistant.

HANDICAP ACCESSIBLE TURNPIECE

BALDWIN HARDWARE baldwinhardware.com

The Estate ADA Turnpiece from Baldwin Hardware is made from solid brass and is crafted to allow for effortless operation for users. It is available in 14 finish options and can be installed on interior and exterior doorways. The turnpiece also features Baldwin Hardware’s Limited Lifetime Finish warranty.

Photo courtesy of Truewerk

IS NOW AI

Bring Efficiencies to Your Operation With This Emerging Technology

BY LINDSEY THOMPSON

From sentient supercomputers taking over space missions in “2001: A Space Odyssey” to a robot helping solve a murder and save the day in “Big Hero 6,” artificial intelligence (AI) has been a main character in pop culture for over a century. No longer just a scene from science-fiction, AI has made its way into the independent home improvement channel and has shown its usefulness in improving efficiencies within operations. And in these continually uncertain times, any gains in efficiencies that lead to a solid bottom line are welcome, no matter the size of your operation.

AI in Action

From stopping theft to generating new ideas to creating content, AI is benefitting independent retailers of all sizes and types.

The editorial staff of Paint & Decorating Retailer even experimented with AI design programs to create the cover of this issue, utilizing this future-forward technology to show our readers another example of AI in action.

If you’re ready to dip your toes in the AI waters or just dive right in, Paint & Decorating Retailer shares the history of the technology and a breakdown of the basics of AI. Plus, see how AI is helping operations be more effective and read insights from retailers in the independent home improvement channel who are currently using AI in their operations.

RESOURCES

Dive Into AI

If you’re ready to explore AI further, check out our database of AI vendors and the various ways they can help you at PDRmag.com/ai-vendors

The Birth of AI

In 1950, computer scientist Alan Turing published “Computing Machinery and Intelligence” asking the question: “Can machines think?” In 1956, John McCarthy first coined the term “artificial intelligence” at the first-ever AI conference at Dartmouth College. It would be almost 50 years before McCarthy would write his paper “What Is Artificial Intelligence?” in 2004 and create the often-cited definition of AI: the science and engineering of making intelligent machines.

Flash forward another 20 years, and AI is more than just a buzzword—it’s become an integral part of our lives. And many times, you don’t even realize you’re using it. All those junk emails that go to your spam folder—AI. When you type in the search bar and it autofills with suggestions—AI. You’re driving and Waze suggests a different route—AI. Ask Alexa or Siri or Google Home anything—AI.

AI has already infiltrated many parts of our lives, but to help your operations be better and more profitable, explore these nine operational areas where AI can improve efficiency, customer service and profitability.

1 | Operational Forecasting

At Hill Country Paints, with locations in College Station, Waco and Houston, Texas, employee development manager Steven Hill is so interested in the ways AI can benefit his

operation that he is currently enrolled in an online boot camp for machine learning and artificial intelligence through Ohio State University.

The classes are designed to give students real-world and hands-on experience with the latest AI technologies and methodologies. Because he doesn’t come from a data or computer science background, Hill hopes to use what he learns to implement AI-driven solutions to better optimize inventory management and improve customer service.

“A chatbot will allow us to provide instant support and product recommendations to customers, and by doing so, we can free up our employees to handle more complex tasks,” Hill says. “I would like to implement chatbots to guide customers through a more streamlined and easier process, so my employees can focus on taking care of customers in the store.”

While the classes are not specifically tailored to independent paint retailers, Hill is learning the framework for how different AI technologies, specifically supervised learning and unsupervised learning, could work in retail and his paint operation.

Supervised learning programs with labeled input and output information could be used for more accurate and reliable predictions in areas like sales forecasting, inventory management and customer behavior, Hill says. Supervised learning could also help identify outliers,

Hill Country Paints employee development manager Steven Hill (left) is taking online courses on AI. He hopes to use what he learns to improve operations, including inventory management and targeted marketing.

INDUSTRY INSIGHTS

Keeping Up With AI

Learn how major big-box retailers are using artificial intelligence to serve customers at PDRmag.com/big-boxes-ai

such as abnormal sales spikes from weather, special store promotions or other reasons, so those situations can be potentially recreated to boost sales again.

“Another big strength with supervised learning is that it has more reliable predictions when it pertains to marketing, allowing for more targeted marketing that can be used to identify and target specific customer segments based on their past purchase behavior and demographic data,” Hill says.

Hill foresees using unsupervised learning, which requires him to do more interpretation of the output data, for market analysis. For example, looking at items frequently purchased together to give insights on better ways to lay out the store.

While taking the classes, Hill has already started playing around with different AI programs, inputting existing data and using models to predict and forecast.

“I’m using a very small set of data, so right now it’s all about getting repetitions in and just practicing and getting the muscle memory down,” Hill says. “To make really good use of this for our business, we need a lot of information, and not just more information, but good quality information. If you give it bad information, you’re going to get bad information back.”

While not glamorous, one of the keys to effectively using AI is having clean data, which Hill says means getting into the nitty gritty of your operation’s spreadsheets.

“It is a lot, and it helps to have someone on staff who is willing to get into the weeds,” he says.

Hill emphasizes that he is by no means an expert in AI, but is excited to learn all he can because he sees the future potential benefits of the technology.

Some people have fears of AI taking over jobs, but right now, AI is taking care of those tasks that free up associates to focus on the customer.

“The responsibility is on us as small business retailers to not go into the future kicking and screaming, but rather be reasonable and evolve with what’s coming,” Hill says. “The big boxes are already investing in these technologies, and if we don’t start adapting and implementing, we will never be on the same playing field. We need to take our strengths of better products and higher levels of customer service and leverage those with technology.”

2 | Loss Prevention

The independent retail channel is no stranger to the prevalence of retail theft. Fortunately, technology is allowing retailers to better protect their operations.

As the owner of Gow’s Home Hardware & Furniture in Bridgewater, Nova Scotia, Amanda Fancy looks for any tools that can save her time and energy so she can focus more on her operation.

“Honestly, if there’s something in my world that can make my life easier, I want to do that,” Fancy says. “The targets are always moving, so if technology like AI can help us stay ahead of the curve, I want to take advantage of it.”

Fancy has implemented AI to help detect and deter theft in the store. The store is outfitted with security cameras from InVid Tech that include AI programs for facial recognition. The facial recognition program alerts herself and selected employees by email when it recognizes the face of a previous offender in the store or when a customer is exhibiting suspicious behavior. Fancy says she eventually wants to have those notifications come via text message so that they can act more immediately.

The program also tracks what areas of the store are busier during certain time periods, so Fancy can schedule employees accordingly, as well-trained and engaged employees are one of the best theft deterrents.

“Using AI for loss prevention has been huge for us because like many other independent retailers, theft has hit us hard,” Fancy says. “The AI we’re using is not necessarily cutting edge for the customer, but it definitely helps elevate our level of customer service.”

Gow’s Home Hardware & Furniture owner Amanda Fancy has brought in AI technology as part of her loss prevention strategy. The technology uses facial recognition AI to track suspicious behavior and identify previous offenders.

3 | Idea Generation

As retailers strive to continually provide an engaging customer experience, coming up with those ideas is the perfect job for AI. In an effort to spend less time generating ideas for store events and marketing content, Jessica Bettencourt, president

and CEO of Klem’s in Spencer, Massachusetts, uses ChatGPT to create taglines for advertising and write marketing and promotional copy. Her retail mastermind group has been learning about AI and testing the platform for a few years.

“ChatGPT even came in handy when a fellow retailer was trying to come up with a name for their new rewards program,” she says.

Bettencourt asked ChatGPT for ideas when she wanted fresh concepts for children’s events to host in the store, using the prompt “fun kids’ event ideas to be held at a retail store.”

Looking toward the future, Bettencourt plans on using AI for additional marketing tasks, creating blog posts and similar marketing content and writing product descriptions for e-commerce.

As she looks to what the future holds for AI in her operation, Fancy wants to use it to improve the overall operation and ultimately, customer experience. She will be looking to see how AI can be used to help customers shop in the store’s furniture and appliance department and use it for social media content planning to stay on top of the latest and greatest trends in social.

“The point is to streamline human tasks, not to replace a human with AI,” Fancy says. “I think if we can automate some of the repetitive tasks, it gives us an opportunity to focus on those areas we never get a chance to focus on. So ultimately, it makes us stronger as a business, and from an efficiency standpoint, the sky’s the limit.”

4 | Customer Service

Customer service is the cornerstone of most independent home improvement operations but can also be a huge time suck on owners and managers—enter AI. In Capterra’s 2023 CX Investments Survey, 65% of companies surveyed use AI for customer service, and of those, 69% use machine learning, 65% use smart assistants and 64% use chatbots.

Bradley Carson, owner of J-Town Hardware in Jeffersontown, Kentucky, has been using AI to send messages to customers on the store’s social media sites, saving hours of time each week responding to messages.

These automatic messages are generic in nature, thanking customers for reaching out, but provide a quick touchpoint between the store and customer. They have also been using AI to create social media content and manage the posting.

“Because this is new technology to the industry and to us, there is always a learning curve,” Carson says. “We are still trying to overcome our own paranoia, so we are moving slowly. As we get deeper into the uses for AI, we hope to use it for ordering and for answering customer questions online.”

About a year ago, Brent Burrows, vice president, retail and sales for CBS Bahamas, which has two locations in Nassau, says the company added an AI-powered chatbot to the website to replace the human-led chat service they had been using.

While it was helpful, the human-led chat service didn’t meet all of the company’s needs and lacked consistency between agents and providing new and updated information. Burrows says leadership decided to partner with a developer to create an AI-powered chat solution that is specific to the company’s needs in terms of retail and customer support.

“We were paying about $5,000 a month to contract a chat service out of the UK to provide around-the-clock support on our website,” Burrows says. “When ChatGPT started taking off, we realized there was probably a better and more cost-effective way to accomplish the same.”

Jessica Bettencourt, owner of Klem’s, uses AI to come up with ideas for store events. AI provided the idea for a recent event for children that included a magic show and other fun activities for children of all ages.

The chatbot on the CBS Bahamas website provides an additional layer of customer service.

Not only has the new chatbot solution benefited customers at CBS Bahamas and boosted overall customer service, Burrows is re-selling the solution to other businesses under the name StarfishChat.ai.

“For small and medium-size building material businesses looking to compete with larger counterparts, StarfishChat.ai offers an unparalleled advantage,” Burrows says. “It empowers you to provide continual customer support, drive sales and enhance customer satisfaction, all while managing resources effectively and being super simple to set up and maintain.”

5 | Advertising

Thanks to AI programs like ChatGPT, owners and managers with little to no experience in advertising can create effective campaigns in a short amount of time.

Geoff Saunders, manager of Cascade Home Center in Dallas, Oregon, has been in the independent home improvement industry since 1997, so he knows a thing or two about advertising in this channel. Saunders has also seen how inexperience can cripple a new manager and has been experimenting with AI to create advertising campaigns that managers of any experience level can use in their store.

“Even if I knew absolutely nothing about advertising, I could put an inquiry into ChatGPT and it can produce a pretty robust plan, including key areas to highlight,” Saunders says.

In his experimentation, Saunders entered into ChatGPT: “What kinds of projects and products should be highlighted in an advertisement for a hardware store for the months of July and August?” The program then provided a full advertising plan with key areas to highlight, specific products under each key area to promote and the home improvement project homeowners are most likely to complete during those months, plus the products to advertise for those projects. It also outlined promotional offers and services a retailer could offer.

“While it won’t replace employees, AI can be a helpful tool for newer managers who don’t have the time or experience to create full advertising plans,” Saunders says.

6 | Content Creation

Independent retailers often wear many hats as a small business owner, and with all the areas of the operations demanding their attention, content creation often gets put on the back burner. From social media posts to product descriptions, creating content for your operation can be a full-time job. According to a survey by Constant Contact and Ascend2, 73% of small businesses lack confidence in their marketing strategies. Over half of the survey respondents indicated that the most time-consuming marketing task is creating content.

Going hand-in-hand with content creation, marketing is another task that many small business owners don’t

“Retailers should use AI as a diving board to get them into the marketing waters. We want AI to make marketing easier, quicker and more effective.”

—Brian Young, Laoch Consulting

have time or brain power to dedicate to. Brian Young, small business consultant with Laoch Consulting, encourages his clients to utilize AI, like ChatGPT, for marketing tasks.

However, he cautions that using AI for marketing shouldn’t be “set it and forget it.”

“Oftentimes marketing content created by AI is stale and comes across as automatic and robotic,” Young says. “It often misses the mark on the personal, genuine and human aspects retailers want to convey.”

When businesses use AI for marketing content, Young says it can be misused or relied on too heavily. Rather than considering AI a source for instant answers and then automatically copying and pasting what ChatGPT puts out as marketing content, retailers should dig a little deeper and consider their audience, tone and goal.

“Retailers should use AI as a diving board to get them into the marketing waters,” Young says. “We want AI to make marketing easier, quicker and more effective and to provide human-grade content, but we need to think of artificial intelligence as more of a glorified brainstorming and idea generator rather than a replacement for a marketing employee. This strategy will still cut your content creation time in half.”

To get the most out of using AI for marketing, Young says it’s crucial to tell AI what your goal is, who you are targeting, how long you want the response to be, where you are using this content and what you’d like the content to be about. If you want AI’s response to be conversational, comical,

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whimsical, authoritative or empathetic, you have to be specific.

Young says users need to have a conversation with AI, not just ask a question and accept the answer without asking follow-up questions to clarify and correct it.

“Do not accept everything that AI says, and don’t share the content if you don’t agree with it or it just isn’t you,” Young says. “It’ll ruin your reputation and authority when you want to build it up.”

7 | Solve Problems

Whether you’re a writer or web developer or any other type of creator, sometimes you just hit a roadblock that AI can help you break through.

Nick Weiner, senior marketing coordinator for Lancaster, says the marketing team has turned to AI to help solve problems, everything from software issues to writer’s block to code writing failures.

The team uses generative AI programs to create images and videos when they don’t have the time or resources to create them in a studio.

While AI has been helpful in certain situations, it has its limitations, Weiner says.

“AI can really only help you as much as you can help yourself. You have to ask the right types of questions and phrase it in a particular manner for AI to understand,” he says. “There are still a lot of limitations on the various available software. I’m interested to see where it takes us, but I don’t see it replacing anyone’s job anytime soon.”

8 | Cybersecurity

As the vice president of membership and marketing at the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC), Luke Vander Linden works closely with retailers and other business owners, helping them put loss prevention processes and programs in place to protect their operations against loss.

Vander Linden has seen AI being utilized in the retail sector for both loss prevention and cybersecurity in several innovative ways.

“In particular, as loss prevention becomes more reliant on technology, we’re seeing increased capabilities and also

AI INSIGHTS FROM Across the Industry

As part of the Independent Home Improvement Conference lineup taking place Aug. 27-29 in Marco Island, Florida, several sessions will cover artificial intelligence. Scan the QR code or visit IHIConference.org to learn more about these sessions and register for the conference

an evolving intersection with cybersecurity,” Vander Linden says. “Real-time tracking and analysis as enabled by AI-powered systems is allowing retailers to have greater insight into a wide range of critical indicators ranging from inventory levels, user behavior, point-of-sale monitoring and fraud detection.”

Some of the specific ways AI is assisting retailers protect against cybercriminals include anomaly detection, where AI monitors network traffic to detect unusual patterns that may indicate a cyberattack, and transaction monitoring that relies on AI algorithms to analyze transactions for signs of fraud, such as unusual purchasing patterns or multiple transactions from different locations in a short period.

When it comes to data protection, AI is used in encryption management systems to manage and automate encryption processes and ensure data security. AI systems are also being used to control and monitor access to sensitive data, preventing unauthorized access.

9 | In-Store Service

AI can also be beneficial directly for customers, as Ashley Peterson, owner of Blue Mist Paint & Decorating located in Spartanburg, South Carolina, has discovered. She and her husband Heath have been in the independent paint industry for two years but have already tapped into a number of helpful resources and tech tools that have guided their customers on making product choices.

They have been using the color visualizer tool available through the Richard’s Paint website and hope to incorporate Daltile’s Stylizer on their own website to increase web traffic and encourage customers to stay on the website longer.

Peterson says she would love to add a kiosk to the store that would include one or more AI programs that customers can access to play with color and home decor choices.

“In my experience, many consumers don’t know these types of tools exist, so if we can offer them, it would allow us to serve our customers even more,” Peterson says. “I am not convinced that digital paint samples will ever give you the most accurate look, but I think it is a great starting point.”

INDEPENDENT HOME IMPROVEMENT CONFERENCE

Sun, Sand & Strategy

Independent Home Improvement Conference Lands in Marco Island

Learning meets leisure at the 2024 Independent Home Improvement Conference taking place August 27-29 in Marco Island, Florida. ROI for retail operations and innovation awaits…

August 28

7:30 a.m. to 3:00 p.m.

8:00 a.m. to 8:45 a.m.

Partner Pavilion Open

Explore and connect with dozens of the industry’s most popular vendors in the exhibitor area and meet companies that can help you improve your ROI and more.

Breakout Sessions

• Behind the Screens: Taking on E-Commerce

• From Repeat Buyers to Raving Fans: Mastering Customer Loyalty

• Not Another Pizza Party: Fresh Ideas to Boost Employee Engagement

• Shrink Survival Guide: Strategies for Retail Resilience

• A Website Story: How One Store’s Website Went From Mediocre to Meaningful, Hosted by Mountain Mojo

10:00 a.m. to 10:45 a.m.

Breakout Sessions

• Ad Wars: Balancing Traditional vs. Digital Advertising

• Cyberthreats to Severe Weather: Managing Risk Across Your Operation

• From Clicks to Cash: Navigating E-Commerce Trends

• Mission Retention: Tips on Finding and Keeping 5-Star Staff

• Saving You Time: Putting AI to Work for Your Business, Hosted by Rundoo

• Prepare for OSHA’s National Emphasis Program, Hosted by GMG EnviroSafe

9:00 a.m. to 9:45 a.m.

Breakout Sessions

• AI Unleashed: Supercharge Your Business

• Dollars and Sense: Maximizing Productivity With Minimal Investment

• Home Turf Advantage: Mastering Local Inventory Advertising

• Navigating Cash Flow: The Roadmap to Retail Prosperity

• Banking on Growth, Hosted by National Cooperative Bank

11:00 a.m. to 11:45 a.m.

Breakout Sessions

• Creative Solutions to Make a Big Marketing Impact on a Shoestring Budget

• Leadership Lab: Developing Solutions for Your Dream Team

• Unlocking the Secrets of Tech Investment ROI

• Using KPIs to Boost Success

• Customer Experience Isn’t Always at Face Value, Hosted by ECI Software Solutions

• Toilets Go High Tech: Capitalize on the Rapidly Changing Toilet Repair Market, Hosted by Fluidmaster

11:30 a.m. to 12:30 p.m.

12:45 p.m. to 1:30 p.m.

Lunch & Networking

KEYNOTE

Mastering Change: Cultivating Mindsets for Lasting Success

Al Comeaux draws from his extensive career, beginning at a hardware store and spanning leadership roles at Travelocity, GE, Sabre and American Airlines, to delve into the transformative mindset essential for navigating change successfully and propelling businesses forward.

Speaker: Al Comeaux, change agent and former executive at Travelocity, GE and American Airlines

1:30 p.m. to 2:15 p.m.

2:15 p.m. to 3:00 p.m.

Beyond Survival: Creating Growth in a Flat Economy

Hear from a dynamic group of retailers who are making strategic choices to drive growth in their operations, regardless of what the economy has in store.

Panelists: Dave Ables, Owner, Three Sons Hardware and Tri-County Lumber; Josiah Gates, COO, The Aubuchon Co.; Jeff Grasty, President of Florida Paints

State of the Industry

Explore key insights into current market trends and explore how retailers are investing in their operations and their teams amid an uncertain economic future.

Presenter: Dan Tratensek, COO and Publisher, North American Hardware and Paint Association

6:00 p.m. to 9:00 p.m.

Young Retailer of the Year Award Ceremony

Celebrate the 2024 NHPA Young Retailer of the Year honorees who represent the next generation of aspiring independent home improvement and paint retailers. Ticketed event.

Tyler Garrett, President, CEO and Co-Owner, Moscow & Pullman Building Supply

Lee Heinrich, Owner, H&R Hardware and Lumber

Jonathan Jasik, General Manager, Sarasota Paint

Joel Pletch, Store Manager, Walkerton Home Hardware

Isaac Weber, Owner and President, Lugbill Supply Center

Alexander Ziegenbein, Owner, Gretna Ace Hardware

Thank you to our program sponsors!

7:30 a.m. to 3:00 p.m.

8:00 a.m. to 8:45 a.m.

10:00 a.m. to 10:45 a.m.

Partner Pavilion Open

Breakout Sessions

• Behind the Screens: Taking on E-Commerce

• From Repeat Buyers to Raving Fans: Mastering Customer Loyalty

• Not Another Pizza Party: Fresh Ideas to Boost Employee Engagement

• Shrink Survival Guide: Strategies for Retail Resilience

• Tackling Real-Life Challenges and the Evolving Independent Hardware Retail Business, Hosted by 4R Systems

Breakout Sessions

• Ad Wars: Balancing Traditional vs. Digital Advertising

• Cyberthreats to Severe Weather: Managing Risk Across Your Operation

• From Clicks to Cash: Navigating E-Commerce Trends

• Mission Retention: Tips on Finding and Keeping 5-Star Staff

9:00 a.m. to 9:45 a.m.

11:00 a.m. to 11:45 a.m. August 29

Breakout Sessions

• AI Unleashed: Supercharge Your Business

• Dollars and Sense: Maximizing Productivity With Minimal Investment

• Home Turf Advantage: Mastering Local Inventory Advertising

• Navigating Cash Flow: The Roadmap to Retail Prosperity

• How to Deter Thieves and Protect Your Store, Hosted by Watcher Total Protection

Breakout Sessions

• Creative Solutions to Make a Big Marketing Impact on a Shoestring Budget

• Leadership Lab: Developing Solutions for Your Dream Team

• Unlocking the Secrets of Tech Investment ROI

• Using KPIs to Boost Success

• The Cyberthreat to Independent Retailers, Hosted by Pennsylvania Lumbermens Mutual Insurance Co.

• Layers of Security: Protecting Your Business & Customers From Cyberthreats, Hosted by Epicor

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11:30 a.m. to 12:30 p.m.

12:30 p.m. to 1:15 p.m.

2:15 p.m. to 3:00 p.m.

KEYNOTE

Lunch & Networking

What’s in the Sauce? Customer Service Secrets From Chick-fil-A

Arthur Greeno will unveil the essential elements for cultivating exceptional customer experiences, empowering attendees to embark on a journey toward unparalleled hospitality.

Speaker: Arthur Greeno, Chick-fil-A restaurateur in Tulsa, Oklahoma, author and Guinness World Record holder

Innovation Unleashed: Inspiring Stories From NHPA’s Top Guns

The 2024 Top Guns Award honorees share their stories of innovation, community stewardship and strategic vision, demonstrating how their leadership has shaped the landscape of independent home improvement retail.

Panelists: Glen Morosohk, General Manager, Ricciardi Brothers; Wendy Stine, President, Stine Home + Yard; Darren Tomasini, President and CEO, Dazey’s Supply

1:15 p.m. to 2:00 p.m.

3:00 p.m. to 3:45 p.m.

Why Is This so Hard? Navigating the Labor Dilemma

This panel offers a platform for attendees to glean insights from industry leaders who are pioneering unconventional methods for sourcing, retaining, motivating and compensating their teams.

Panelists: Yilda Marte, Director of Human Resources, Sunshine Ace Hardware; Gina Schaefer, Founder, A Few Cool Hardware Stores; Leonardo Osorio, Director of Human Resources, Sunpro

KEYNOTE

Unleash Your Inner Rudy: Embrace Resilience and Make Every Second Count

Join Rudy as he shares his message of dreaming big, staying focused and overcoming obstacles, empowering attendees to tackle challenges with renewed vigor.

Speaker: Daniel “Rudy” Ruettiger, former University of Notre Dame football player and inspiration for the movie “Rudy”

3:45 p.m.

to 5:30 p.m.

NHPA Top Guns Award Reception

Join us for one final networking opportunity at the grand finale of the IHI Conference. Celebrate your new connections and make it a point to congratulate this year’s honorees. Mingle with your peers and industry partners over cocktails and conversation.

Glen Morosohk, General Manager, Ricciardi Brothers

Wendy Stine, President, Stine Home + Yard

Darren Tomasini, President and CEO, Dazey’s Supply

Thank you to our reception sponsor!

Darren Tomasini President & CEO, Dazey’s Supply

Wendy Stine President, Stine Home + Yard

Glen Morosohk General Manager, Ricciardi Brothers

Partner Events

Scan to see the full schedule and details about the Partner Events.

In addition to IHI Conference activities, attendees can take part in partner events to gather ideas, connect with their peers and see what’s new in the industry. As the organization that represents the entire industry, regardless of affiliation, the IHI Conference encourages attendees to participate in these events and activities, which are free for all IHI Conference attendees.

9:00 a.m. to 5:00 p.m. Tuesday, Aug. 27

Epicor Training

Dive deep into Epicor’s Eagle program with educational sessions covering underutilized tools, tips and tricks and more.

8:00 a.m. to 5:00 p.m.

Orgill Companion Conference

Attend presentations from Orgill executives covering a variety of industry topics and sit in on updates from key vendors.

8:00 a.m. to 3:00 p.m. Wednesday, Aug. 28

Do it Best Partner Activities

Garner insights on cybersecurity, POS tools, e-commerce and more at these educational sessions hosted by Do it Best.

7:00 p.m. to 11:00 p.m.

The Independents Celebration sponsored by Orgill Music and Entertainment sponsored by Do it Best

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• Warner has been setting the quality standards for the industry since 1927

• Committed to providing outstanding products, value and service

Last Chance!

Time is running out to get your tickets and hotel rooms by August 26. Visit ihiconference.org today!

SUCCEED G iveaway TO LEAD

All retailers who register and attend the conference will be entered to win an NHPA In-Store Leadership Training led by Kim Peffley. This personalized training session, valued at $7,500, is designed to empower your team and drive company-wide success.

Scan the QR code to learn more about the giveaway.

Kim Peffley

Fuel your chances by earning points in the on-site game, either in the app or on the website. Download the IHI Conference App available on the App Store or Google Play.

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CATEGORY FOCUS

Caulking the Gaps

HOW A FORMER CONTRACTOR USES HIS INDUSTRY EXPERTISE TO EDUCATE CUSTOMERS

BY JACOB MUSSELMAN

Caulking is a critical component in construction and home improvement, playing a vital role in sealing joints and seams against moisture, air, insects and dust. Mastering the right techniques and choosing the best products are essential for achieving professional results in any caulking project, but many of your customers don’t have the proper knowledge to get the job done right.

Chris Berry, owner of Paint Life Supply Co. in Boise, Idaho, recognized this gap in education and dedicated himself to demystifying the process. With over 20 years of experience as a professional contractor, Berry now shares his expertise through a popular YouTube channel and comprehensive online courses, ensuring that both professionals and DIY enthusiasts have access to the best tools, products and techniques for mastering caulking.

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“When I walked into a paint store when I first started as a contractor, nobody would talk to each other because the mindset was if you tell somebody something that will make them better, you’re taking food off your own plate,” Berry says. “Everybody is your competition.”

Determined to change this mindset, Berry began creating YouTube videos to share his hard-earned knowledge. Over the past 13 years, his channel has grown to boast over 600,000 subscribers and amassed nearly 190 million views across almost 2,000 videos.

In 2019, Berry sold his contracting business to pursue his dream of owning a paint supply store and continuing to share the knowledge he gathered throughout his 20 years in the paint industry.

Paint Life TV, Berry’s YouTube Channel, and his more in-depth online courses, Paint Life Academy, offer a wide range of paint knowledge, including multiple videos on caulking and an online caulking program. In the first lesson, Berry covers professional tools used for caulking.

“Whether you’re a professional or not, you have to have the tools professionals use,” Berry says. “There’s a lot of options out there, many of which are good ones, but there are also many bad options. In the caulking course, I talk about the tools I use that made me successful applying caulking and sealants in various scenarios.”

Berry then delves into the specific products he trusts.

“There’s good caulking and there’s bad caulking,” Berry says. “You’re never going to have success if you’re using bad sealants. In one of my videos, I show which sealants I trust and go in depth on why I use that specific brand.”

After covering the tools and products needed, Berry addresses specific techniques and special situations.

“Sponge-caulking a door jam is an art in itself,” he says. “I also walk the student through how to properly caulk a window and other DIY scenarios.”

Berry’s course offers a comprehensive overview of how to become more efficient at caulking, incorporating the techniques he’s honed over the years.

“Our online program is very structured and much more detailed than our YouTube videos,” he says. “The course has quizzes throughout, as well as a final exam, but everything is self-paced, so it’s easy to navigate.”

Upon completing the online program and receiving their Paint Life Academy certificate, Berry hopes students will feel more confident in their caulking skills and ready to tackle any project.

“The end goal of the course is to help them make more money if they’re a pro or be proficient at what they’re doing and get professional results if they’re a DIYer,” he says.

The caulking course, and all of his online courses, aren’t just meant for professionals. He promotes his courses at his store and on his social media accounts.

“We had a customer come into our store who was painting his whole house, and I told him about our exterior painting

“We only sell products that I believe in 100%. I’m not going to sell a caulking or sealant that I haven’t used or tested and trust.”

—Chris Berry, Paint Life Supply Co.

course and explained the course and how the knowledge gained from it will cost less than if he had a professional come do the job,” Berry says. “He purchased the course and came into the store after he finished and told us everything went great.”

Berry also uses the course to train his employees.

“We require our employees to take the course and give us feedback,” he says. “They’ve all taken the quizzes and passed the final exam, and it’s interesting how much knowledge they gain from taking the course.”

Berry said the courses helped his employees be proficient in answering customers’ questions in store and through their chat system on their website. Since all of his employees have taken his courses, they’re able to answer customers’ questions without Berry, and he trusts them because they have the same knowledge he has.

“Over 95% of the time, our employees can answer any questions our customers have,” he says. “If they can’t, they can contact me, and I’m able to help.”

Berry’s store isn’t like most paint supply stores. He sells everything a customer would need to be successful at a project, but focuses his business more on sundries than on paint and coatings.

“We only sell products that I believe in 100%,” Berry says. “I’m not going to sell a caulking or sealant that I haven’t used or tested and trust.”

CONNECT

Learn More About HDA

Explore Hardlines Distribution Alliance’s offerings at hdaworks.com or contact president Shari Kalbach at shari.kalbach@hdaworks.com or 720-875-2226

INDUSTRY EVENTS

Overflowing With Opportunity

HDA PLANS

AFTER HOSTING a sold-out Group Merchandising Conference in May, Hardlines Distribution Alliance (HDA) is setting its sights on the Executive Planning Conference (EPC) scheduled for November 19-21 in Tucson, Arizona. This year, the EPC is brimming with opportunity for member distributors and manufacturer partners to connect. HDA will introduce a vendor showcase that will allow new vendors to highlight products and their company in addition to scheduled meetings, a golf tournament, receptions and the featured item area.

“In planning the upcoming EPC, we wanted to provide even more opportunities for vendors to introduce their products and their programs to key decision-makers for attending distributors,” says Trent Kauffman, director of merchandising at HDA. “The new vendor showcase combined with the popular staples of the EPC heightens vendor and distributor interaction.”

The vendor showcase will take place on the first day of the conference, Nov. 19, and will utilize a roundtable format for member distributors to get acquainted with new vendors. Those introductions will allow distributors and members to walk into their private, pre-scheduled meetings on Wednesday and Thursday with a head start on forming a business relationship.

In addition to the vendor showcase, vendors will have the opportunity to expand upon their program and available products during the one-on-one meetings. These meetings are

the perfect way to get an audience with decision-makers who are engaged, focused and searching for impactful programs to enhance their business. The November timeframe also has the added benefit of setting all attendees up for success moving into the new year and impacting ROI by allowing vendor attendees to meet with dozens of distributor members over the course of only three days.

The EPC is also designed to maximize networking opportunities in social settings during the golf tournament on the Jack Nicklaus Signature Golf Course and during evening receptions. Vendors can sponsor hole-in-one contests, the beverage cart and more to keep their name in front of the group. A welcome reception, themed dinner reception and farewell reception provide even more social settings to speak with attendees outside of scheduled meetings. To further introduce and display product during the EPC, the featured item area provides a designated spot for distributor members to peruse and vote on displayed products for each category.

HDA’s mission to curate quality, substantial events continues to evolve from year to year. This year’s EPC promises to be overflowing with opportunity for all attendees to make meaningful connections that drive business growth into the future.

The Retail Marketplace Can Help You

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BUSINESS FOR SALE

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3.21 million

The main building is a total 27,213 sq. ft. of retail and warehouse space on 4 acres. The main bldg. was constructed in 1994 with additions constructed in 2002 and 2004. Single story with 22’ clear height in 11,459 sq. ft. of lumber warehouse, three grade level doors and two dock height doors.

BUSINESS FOR SALE

Hoosick True Value

Location: Hoosick Falls, NY

Gross Revenue: $1.26 million

Price: $1.875 million

This opportunity offers a turnkey sale of a general hardware business located in northeastern Rensselaer Co., New York. The business serves five towns and southwestern Bennington Co., Vermont, and 25 miles east of Troy, New York.

BUSINESS FOR SALE

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1.04 million

This historic home improvement and hardware store is a staple of its community and operates from its headquarters in the Kansas City Metropolitan Area of Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products.

BUSINESS FOR SALE

Albrights Hardware & Garden Center

Location: Allentown, PA

Gross Revenue: $1.9 million Price: $800,000

Albrights Hardware is an established hardware store with strong neighborhood ties and has been a Lehigh Valley staple for over 50 years. The current owners have owned the store since 1992. Albrights serves its loyal customer base by providing quality products and exceptional customer service.

BUSINESS FOR SALE

Central Vermont Paint, Flooring and Decorating Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1.1 million

Full-service decorating store providing flooring, paint, window treatments, kitchen/bathroom remodeling, cabinetry product offerings, design assistance, specialized service, and professional installation.

BUSINESS FOR SALE

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

BUSINESS FOR SALE

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEEKING BUSINESSES

The Aubuchon Company

For our next acquisition, we are looking for:

• Single-store and multi-store hardware operations

• Located in northeast and southeast United States

• Store size of 5,000-30,000 ft 2

• At least $3 million in average store sales

SEEKING BUSINESSES

Bolster Hardware

We are looking for:

• Geography agnostic

• With or without real estate

• Store revenues of $1.5M+

• We prefer to honor the family name and heritage in the local community by not changing the name

• We prefer to keep all employees as part of the acquisition

SEEKING BUSINESSES

Gold Beach Lumber Yard

We are looking for:

• Single-store and multi-store hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

News to You

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What You Need to Know in August

PPG Tours U.S. to Promote New Automated Paint Mixing System

To bring attention to its new automated paint system, MOONWALK, PPG has been touring the U.S. The system is housed in two trucks outfitted with the company’s suite of digital technologies, and at each stop, the trucks host live demonstrations and hands-on experiences.

Johnson Paint Continues Northeast Expansion

Johnson Paint | A Ring’s End Brand, has acquired Wilmot’s Decorating Centers in Middleboro, Massachusetts, and has announced its newest store in Plymouth. With the latest expansions, the company will operate 14 locations in Maine, Massachusetts and New Hampshire.

House-Hasson Hardware Finalizes Acquisition of Bostwick-Braun

The Tennessee-based hardware supplier has completed its purchase of former Midwestern U.S. wholesale hardware distributor Bostwick-Braun’s warehouses and inventory. The acquisition adds two warehouses in Indiana and Arkansa and more than 45,000 products to House-Hasson’s existing 55,000 SKU inventory.

To read these news stories and other news, visit PDRmag.com/news.

Orgill and Do it Best to Celebrate Retailers With Beach Bash at IHI Conference

When attendees from across the channel gather this month for the Independent Home Improvement Conference in Marco Island, Florida, they will be in for quite the reception. Orgill is hosting the Celebration of Independents with Do it Best sponsoring the music and entertainment for the event.

Koelnmesse Marks 100 Years With Opening of Confex

In celebration of its 100th anniversary, Koelnmesse announced the opening of Confex, a new event center located at the Cologne Messe/Deutz ICE railway station. The state-of-the-art venue creates new opportunities for innovative event formats in the region.

Crafting the Right Product Assortment

Product assortment is the bedrock of retail. Assortment planning is the process of selecting the right items to be presented in a limited selling space that meets customers’ needs and is productive inventory within that space. It can be as simple as a “cut and paste” planogram from a reliable supplier, or it can be a curated assortment utilizing the diverse supply chain ecosystem we covered earlier that can provide a more unique product mix. Either way, the assortment should be intentional and consistent with the retailer’s brand, helping differentiate them from other retailers. This is part of the 5P recipe of merchandising that exercises art and science, intuition and data. It starts with a clear understanding of the operation’s brand. This brand is not just the store name or the logo. This brand is how the operation is perceived and what the operation stands for in the marketplace. The operation can be a home center, a lumberyard or a hardware, building supply, paint, farm and feed store, or it can be a variation of these. The better retailers craft their unique brand within this framework, differentiating themselves through an intentional and strategic assortment planning process that delivers their brand in their aisles every day. These retailers stay in their lane and do not deviate with “bolt on” assortments or irrelevant products that might confuse the brand with their customers.

This intentional approach to assortment planning puts key categories for the retailer in a “market position” relative to the competition in the trading area. Standard industry market positions for departments or categories are as follows: Dominant, offering more SKUs than competition; competitive, similar SKU count and price points; focused, offering a carefully selected and targeted SKU mix; and convenient, offering a minimal selection. Once a market position is established, an assortment plan is created to deliver it. In the end, the right assortment plan will have the right brands where relevant, a logical range of price points without gaps or duplicating SKUs that cannibalize sales from other SKUs and include those essential accessory items necessary to complete the project.

Know your brand, assort to that brand and deliver it in your selling space. Don’t set it and forget it. The assortment plan’s life cycle has only begun.

Meet Tony Founder Merchant5 Advisors

Tony Corsberg’s nearly 45-year career began as a stocker at Friedman Bros.

Hardware, in Santa Rosa, California. He eventually served as vice president of merchandising, where he spearheaded the rebranding initiative that created Friedman’s Home Improvement, which today operates four large-format home centers with lumberyards in northern California. Tony retired from Friedman’s in 2018 and later started his consulting firm Merchant5 Advisors, guiding independent retailers in merchandising initiatives. In 2022, he was integral in developing NHPA’s Foundations of Merchandising Management program.

Clean-A-Finish

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• Breaks down grease and grime on kitchen cabinets and tables

• Cleans all finishes before polishing, waxing, or restoring

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CALE NDAR

September 6-9 | INDIANAPOLIS, IN

PACOA Fall Dealer Market

September 7-8 | FLUSHING, NY

True Value Fall Reunion

September 9-11 | ORLANDO, FL Do it Best Fall Market

Blish-Mize Fall Market

September 12-14 | OVERLAND PARK, KS

*Events are current as of press day.

To add your event to the industry calendar, send an email to editorial@YourNHPA.org

FREEDOM ENROLL TODAY

Navigating Cash Flow ROADMAP

TO FINANCIAL

Don't Let Cash Flow Problems Hold Your Business Back

Tired of the cash flow roller coaster? Find your path to a smoother, more profitable ride with NHPA’s exciting new course, Navigating Cash Flow.

Join fellow retailers for this comprehensive and interactive course designed to help retailers like you take control of your finances and unlock your business’s full potential.

IN THIS GAME-CHANGING COURSE, YOU’LL MASTER HOW TO:

Diagnose and resolve root causes of cash flow problems

Budget accurately and manage financial risk

Optimize inventory management and vendor negotiations

Streamline receivables and payables for improved cash flow

Develop short-term and long-term marketing strategies to boost revenue

Live Session Oct. 15-16 | Indianapolis COURSE INCLUDES: Virtual Workshops 6-Week Remote Training

Weekly sessions to implement newly learned strategies into your operation

Scan the QR code to learn more and enroll today or visit: YourNHPA.org/cash-flow Seats are filling up!

EDUCATION

Tackling Loss

Keep your team, your store and your customers safe by exploring the Loss Prevention training course at YourNHPA.org/academy

EXPERT INSIGHTS

Meet Jim

Jim Close is a loss prevention professional with 24 years of experience working with independent home improvement retailers. Prior to working in loss prevention, Jim was an investigator with a major metropolitan law enforcement agency. He also teaches loss prevention in NHPA’s Retail Management Certification Program, and he helped develop NHPA’s Loss Prevention online training program.

Don’t Be Wrung by Employee Theft

In my previous columns, we’ve explored external drivers of shrink with a focus on shoplifting and organized retail crime (ORC). Now we are going to focus on employee theft as it is the second largest cause of shrink.

What makes internal theft different from shoplifting is that you as an owner or manager have direct control over deterring internal theft. The most effective techniques involve policy and procedures coupled with education.

There are many ways a dishonest employee can steal from you, but the most common method used to steal from the cash register is fraudulent refunds. The reason this method is so widely used to steal is because it is easy to do and difficult to detect.

In this case, the cashier will either reprint a cash sale receipt or keep one a customer discarded and then use that receipt to refund the cash value of the sale and pocket the money. Using this method, the cash drawer will balance and back office paperwork will appear normal. Inventory will be off because the falsely returned item on the receipt was not actually returned. In most cases, the inventory variance will not be great enough to throw up any red flags.

By instituting a simple auditing procedure, you can detect and prevent this type of theft. Tracking the number of refunds processed by each cashier is a good start. You should be on the lookout for employees who process more refunds than other cashiers. This does not necessarily mean that the employee is stealing. There could be a legitimate reason why they lead the pack in refunds, but it is a starting point to dig a little deeper.

An audit of the cashier’s paperwork will tell you if you have an issue. Knowing what to look for is the key to catching and preventing this type of theft.

One clue that an employee is committing theft can be seen in the customer’s signature on the refunded receipt. If they appear to be the same on multiple refunds, that is an indicator that the cashier is signing the POS keypad and not a customer. You should also look to see if the same item is frequently returned by a cashier.

Another option is to randomly call customers to inquire about their refund experience. I can’t tell you how many times I have heard the phrase, “I haven’t returned anything to your store,” when making these types of follow-up calls.

As with all company processes, consistency and communication are key. You can mitigate employee theft at the register by having a process in place that is applied universally and that everyone knows about.

Jim Close Managing Partner Risk Management Services Loss Prevention

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